Fitch cuts Tribune ratings to junk, may downgrade further

GabrielMadway

SAN FRANCISCO (MarketWatch) -- Fitch Ratings on Friday cut Tribune Co.
TRB, -16.67%
ratings to junk status and placed the company ratings on watch negative for possible further downgrade. Fitch took Tribune's issuer default rating, senior unsecured revolving credit facility and senior unsecured notes due 2006-2027 to BB+ from BBB-. The actions follow the Chicago-based media company's announcement yesterday that it plans to explore strategic alternatives. Fitch said in a statement the announcement "marks the second departure by management from stated financial policies in just over a year." The agency added that the rating watch negative reflects its belief there is a ""igh probability" that the announcement will "result in a financial strategy that is detrimental to bondholders."

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